China’s massive solar rooftop roll-out gains traction, but grid struggles to keep pace
‘Distributed’ solar power generation on roofs of houses, factories and airports is spreading across country, but curtailment rate is also rising
Former construction contractor Gao Shouguang switched careers last year, abandoning the troubled property sector to become a solar panel distributor – and another example of China’s economic transition – in the southwestern Chinese megacity of Chongqing.
Gao and his team are busy every day, shuttling around the county where they are based to install rooftop solar panels on houses.
Mounted on steel frames, the gleaming striped panels absorb sunlight and generate electricity that can be sold to grid companies, while also shielding the house from rain and heat.
“Solar panels offer waterproofing and can help households earn additional income,” Gao said. “They’re becoming increasingly well-received by farmers.”
Installing solar panels on a typical 100 square metre (1,076 sq ft) rooftop costs more than 100,000 yuan (US$13,700), and that sees most residents opt to rent their rooftop space to solar panel distributors like Gao.
He offers them 25-year contracts that pay 15 yuan per panel a year, plus a first-year incentive payment of 50 yuan a panel. With each solar panel covering about three square metres, the owner of a 100 square metre rooftop can earn around 450 yuan a year.
Solar panel companies can earn an average of about 780 yuan a month by selling the electricity generated by those panels to grid companies, a technician at a power supply station in one Chongqing county said, adding that they purchase the electricity at about 0.39 yuan per kilowatt-hour and distribute it for local use.
